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Irakli KvaraiaKetevan KutateladzeElisabed Malania
IMPACT OF CONSTRUCTION RISKS ON INVESTMENT COSTS

Summary 

     The article considers the issue of the feasibility of taking into account all risks at the beginning of the construction of new facilities. which have recently become especially diverse. For example, no one could have imagined that last year, due to the pandemic, the construction of many unique buildings and structures was interrupted in many countries of the world. Based on this, it is impossible to accurately take into account all construction risks, especially those that are caused only by political and environmental considerations. Traditionally, neglect of construction risks was directly associated with an increase in investment costs, which has always become the cause of disagreement and disputes between the customer and the builder. When there are unconventional risks, when the continuation or complete stop of work depends on subiective reasons, a big problem for the investor is the reimbursement of costs already incurred. To take into account and properly manage all risks, it is necessary to study individual cases, some of which will be taken from construction practice as in Georgia. So it is outside of it. Before starting the construction of any new facility, it is necessary to consider all possible risks that may be associated with the complication of the work. Traditional risks can be identified almost unmistakably as a result of years of experience. These include inadequate funding, supply, and machinery, design, geological, or geodetic inaccuracies, and other obstacles that may impede the smooth running of the construction process. Facts of groundwater, landslides, unsteady rocks in other areas and other detections are especially common. To eliminate them, it is often necessary to conduct serious investigations and carry out quite expensive measures. All of this can lead to significant, very large unforeseen costs. In such a situation, the investor tries to incur minimal costs, and the builder demands timely and full compensation for all additional work. This primarily harms the investor, who always has a precise and precise calculation of the expected profit. Most rarely refer to the condition provided for in this paragraph.

       In the modern world, processes are developing in such a way that the reason for stopping or ruining the started construction projects can become a completely unimaginable event. Therefore, risks can be divided into conventionally traditional and unconventional risks. Particular attention needs to be paid to non-traditional risks, the share of which is growing.   Construction risks lead to unforeseen increases in investment costs, prolonging the completion dates of the facility. However, it should be taken into account that in case of traditional risks, the construction will be completed. The situation is radically different when it comes to non-traditional risks. In such a case, it is expected that the completion of the construction will be postponed indefinitely or that it will be demolished altogether, which will inevitably lead to problems with the investment costs incurred.      Due to the principles of democratic development of the country, the share of non-traditional - political, environmental, economic and other risks increases. Therefore, the construction of new facilities is very much dependent on the formation of a healthy public opinion, which requires a number of relevant measures to be planned and carried out in advance.